Star Wars takes place a "long time ago in a galaxy far, far away." This idea of "a long time ago" is taken from Akira Kurosawa's samurai films, such as Seven Samurai (one of the greatest samurai films of all time) where the Jedi are inspired by samurai and other ancient military orders. Of course the "galaxy far, far away" implies far, far away from Earth, in another galaxy entirely. This is where the strangeness occurs.
There is one question I have always had about Star Wars and this idea of a galaxy far, far away: why are the main characters so human? Setting aside the obvious technical reasons of film-making and staying in-universe, it is almost inconceivable that human beings would evolve in parallel in two different galaxies. The human form does have some advantages, mainly thumbs and a big brain. However, we are weaker, slower, almost blind, and deaf compared to other life forms on Earth. The idea of parallel evolution, while possible of course, is extremely unlikely. There is a possibility that the human form on Earth comes from this galaxy far, far away. They had faster-than-light (FTL) capability, so it is possible a colony ship from that galaxy using an FTL drive could have colonized this galaxy but there is one big problem. The distance between galaxies is unbelievably huge. The closest galaxy, Canis Major, is 25, 000 light-years away or 236,000,000,000,000,000 km (146,643,601,368,010,816 miles). Even traveling through hyperspace at maximum speed would require a generation ship to reach our galaxy from Canis Major assuming Star Wars takes place in this dwarf galaxy, which seems unlikely. The other major problem with the colony hypothesis is the apparent maturity of the Star Wars universe. Star Wars would have had to take place billions of years in the past in order for a colony ship to arrive on Earth in our past, so we would expect the Star Wars universe to be quite young. It isn't though. A young universe would have much fewer stars than the Star Wars universe has. The number of apparent stars and star systems in Star Wars seems on par with our universe and closer to our time than in the past. So we have a bit of a problem. Or do we? In Loki, we saw that the multiverse has existed time and again in a cyclic manner, presumably for all eternity (at least up until this point). Humans are peculiar to Earth and of course to parallel Earths. Think about the samurai orders and an expanding multiverse. The multiverse expands at a geometric rate, which each universe slightly different from the last. You could think of the multiverse in terms of distance. Travel from timeline to timeline, and you get "farther" away from the starting universe. The farther you travel, the universes become much different than the starting universe. Yet, there are going to be things that remain the same though, such as humans and the age of the universe. The Samarai Age ran from 1185 to 1868 Earth time. Traveling across the multiverse during this time, you would see various forms of the samurai, slightly different in each universe, but with some elements remaining the same. Since the multiverse is infinite, at some you will reach a timeline where the samurai are called Jedi and the universe, while the same age as our own, is already a space-faring society in the 1100s. That is certainly possible if in the Star Wars timeline humans evolved much earlier than in our own. It is quite possible that when you reach this timeline, you have found a "galaxy far, far away" in the multiverse and "a long time ago" in the Samurai Age. I think Star Wars is an alternate universe, quite a distance from our own, taking place during the Age of the Samurai.